In terms of displaying graphics, the greatest accuracy that usually matters (in plain language) is the only pixel on the final display 1 . Given the resolution of a regular current monitor, having another pair or three bits for a height map would be nice - but for most geometries this is really not necessary. In particular, although a single pixel pretty much determines the greatest accuracy for which you have many benefits, drawing Mt. Everest, so its height is actually two or three pixels incorrect, is not really a big problem for most people most of the time.
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